India has seen massive market development in recent years in the stock market and has attracted Foreign Direct Investment or FDI. As a result, the Indian share market has become a viable destination for Non-Resident Indians or NRIs.Read more
Top performing plans with High Returns*
Invest ₹10K/month & Get ₹1 Crore returns*
The NRIs have the right to invest in the Indian share market through a regulated network. NRIs can purchase shares of an Indian company through the stock exchanges in India on repatriation or non-repatriation basis. It comes under the purview Portfolio Investment Scheme (PIS) of the RBI.
NRIs can manage their investments in the Indian share market in the following ways:
Non-Resident Indians or NRIs can invest in the share market by applying for the Portfolio Investment Scheme (PIS). The Reserve Bank of India appoints authorized dealers for this purpose. Therefore, the investor needs to approach the dealers to obtain the PIS.
To invest in the share market, the NRIs need to hold a Demat account that provides an electronic platform for their financial securities. A Non-Resident Indian can have a Demat account post having the PIS license.
NRIs can invest in India through either an NRE account or an NRO account. The NRE account is external and can be opened in the name of an NRI in India. It can be used to park their foreign earnings and hence has a Repatriable nature.
In contrast, the NRO account is an NRI account in India to park NRI income earned in India in INR. The funds from an NRO account are non-repatriable beyond the limit of $1 million per assessment year, including taxes.
There are two types of NRI Demat Accounts:
The process of buying and selling shares is the same for the Indian residents as well as the NRIs. After executing the sale or purchase transaction, the broker sends a contract note to the investor and the PIS bank (Portfolio Investment Scheme Bank).
Nowadays, the banks have started providing multiple NRI banking and investment services to their investors under one roof. As an NRI one can avail of the banking services with the help of a Demat account with the banks. The types of NRI trading accounts have been classified into the following two categories:
An NRI has to submit the following documents to open an NRI Demat account for share trading in India:
The Non-Resident Indians should keep the following things in mind while investing in the Indian stock market:
Non-Resident Indians can easily invest in the Indian share market by opening a Demat account online or offline. The account should be based on his/her requirements and specifications desired. An NRI should choose wisely between the repatriable and non-repatriable accounts to ensure higher returns and effective utilization of his/her investments.
Past 10 Year annualised returns as on 01-12-2023
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
23 Nov 2023Black Friday and Thanksgiving mark the beginning of the holiday
11 Oct 2023The Axis Bank NRI Account is a gateway to seamless banking
09 Oct 2023The ICICI NRI Account is a specialized banking solution designed
11 Sep 2023Long-Term Income Plans are strategic financial products that
28 Aug 2023Capital Guarantee Solution Plan offered by Max Life insurance, a